Price nearing daily resistance at 1.1878 - Possible shorts

The single currency gathered momentum following the release of September’s FOMC meeting minutes. H4 supply at 1.1861-1.1852, as you can see, came under attack. Stop-loss orders sited above the zone’s edge have likely been filled, possibly opening up space for the pair to extend higher.

In spite of this, trouble may be ahead! Less than 20 pips above the noted H4 supply is a daily resistance level at 1.1878. Not only does this line boast strong history, it also intersects with a H4 trendline resistance taken from the high 1.2092 and a daily trendline resistance drawn from the low 1.0839.

Suggestions: A sell from the daily resistance level is appealing. However, traders may want to take into account that weekly price is trading strongly from a demand base coming in at 1.1662-1.1814. Should you still be interested in a sell from the aforementioned daily level, we would strongly advise waiting for additional candle confirmation to form before pulling the trigger (a full or near-full-bodied bearish candle would be ideal).

Data points to consider: ECB President Draghi speaks at 3.30pm; US PPI m/m and US weekly unemployment claims at 1.30pm; FOMC members Brainard and Powell take to the stage at 3.30pm GMT+1.